MADANI ECONOMY'S FISCAL DISCIPLINE BOOSTS INVESTOR CONFIDENCE, RINGGIT'S VALUE -- JOHAN

By Nor Baizura Basri and Mohd Iswandi Kasan Anuar

PUTRAJAYA, Jan 17 (Bernama) -- The reform agenda implemented under the MADANI Economy framework which emphasises fiscal discipline has strengthened investor confidence in the country and contributed to the ringgit’s strengthening last year, according to Treasury secretary-general Datuk Johan Mahmood Merican.

He said that Prime Minister Datuk Seri Anwar Ibrahim’s leadership and the reforms implemented have also been recognised at the international level.

This was proven by Malaysia’s successful ASEAN chairmanship last year, which earned praise from member states, dialogue partners as well as international credit rating agencies, Johan said.

“The reforms implemented by the government are indeed recognised internationally, giving the country credibility when we chaired ASEAN at all levels… (Top officials from) major countries came to Malaysia.

“That, among other things, shows the effectiveness of the economic reform agenda implemented by the MADANI Government (and) we hope that these reforms will continue for the prosperity of the nation,” he told Bernama recently.

According to Johan, the targeted subsidy approach, for instance, differentiates Malaysia from other countries that have opted for across-the-board price increases and cash handouts to address fiscal challenges without sufficient mechanisms to protect the people.

“Through targeted subsidies, our government can ensure that assistance is channeled to those who truly need it, while avoiding higher inflationary pressures on the majority of the population,” he said.

On the ringgit, he noted that the local currency recorded the best performance against the US dollar in 2025, thereby helping to reduce imported inflationary pressures through the costs of goods and raw materials from abroad.

“The strengthening of the ringgit plays an important role in curbing increases in domestic prices, especially those dependent on global supply chains,” he said.

Regarding the country’s economic direction, Johan stressed that the government will continue the MADANI Economy reform agenda consistently, with a focus on attracting high-quality investments capable of generating value-added employment opportunities and offering commensurate wages.

The ringgit ranked as the best-performing currency in Asia last year with an increase of more than 9 per cent against the US dollar and other regional currencies, driven by strong economic fundamentals and encouraging export figures.

Analysts have also projected that the ringgit’s strengthening trend will continue, with the potential of reaching RM3.95 versus the US dollar by the end of this year.

Meanwhile, the Department of Statistics Malaysia said yesterday that based on advance estimates, Malaysia’s economy grew by 5.7 per cent in the fourth quarter of 2025, supported by strong performance in the main economic sectors and robust domestic demand.

-- BERNAMA